transfer earnings


Definitions (2)

1.Wages that a worker could earn in an alternate occupation.
2.Amount of money that a factor of production (capital, labor, land) must earn to prevent being transferred from its present employment to another. For example, the owner of a machine will rent it out if it fetches more income from renting than from its in-house usage. Earnings of any factor of production usually equals its economic rent plus its transfer earnings.

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